General Motors said its decision to cut thousands of jobs and idle five plants in North America will add $2 billion to $2.5 billion to its cost savings in 2019.

The carmaker predicted on Friday a robust year for its global car sales, citing its emphasis on bringing either new or redesigned SUVs and pickups to various markets. In the United States, it said it will maintain sales momentum despite eliminating five, possibly, six sedans from its product offering.

"There are some vehicles that will go out of production, but we will be offering a full year of sales of the new Cadillac XT4 (SUV) and the new Chevrolet Blazer (SUV)" as well as the redesigned Chevrolet Silverado and GMC Sierra pickups, said GM CEO Mary Barra.

General Motors CEO Mary Barra speaks to reporters after meeting with the Michigan congressional delegation to discuss plans for the massive restructuring by the automaker, on Capitol Hill in Washington, Thursday, Dec. 6, 2018.(Photo: J. Scott Applewhite, AP)

GM's President Mark Reuss said GM may not eliminate the Cadillac CT6 sedan despite announcing it will idle the Detroit Hamtramck plant that builds the car.

"We have not made an announcement about the end of the CT6," said Reuss. "That has been speculation around the idling of Detroit Hamtramck."

He said there is room in Cadillac's lineup for a vehicle of that size, but he declined to comment further about the car's future.

UAW's vice president Terry Dittes reacted to Reuss' comment saying, “General Motors builds some of the finest cars, trucks, crossovers, SUV’s and vans right here in the USA. We are hopeful that these new products will be built here to show a commitment to all of America. We invested in GM. Now it is time for GM to invest its future in us.”

Some analysts predict GM will lose one percentage point in market share due to the elimination of the sedans and said it will need to cut at least 2,000 more white-collar jobs, above the 8,000 job cuts GM announced, and some additional hourly jobs at engine plants to make up for the loss of the discontinued sedans. But Barra said GM has no further intentions to idle plants or trim the workforce.

"What we announced is what we have in place for this year," said Barra, but she declined to give a timeline as to when or if that could change. "That's what we think we need to do to make the company sustainable. There's nothing more that's been announced ... based on current business conditions."

Better 2018 profits

GM said its 2018 earnings, to be announced next month, will be better than it predicted last quarter and it foresees a strong year of earnings growth in 2019 based on continued product launches, growth of adjacent businesses and its "transformation initiatives."

GM made all these announcements Friday morning during its Capital Markets Day briefing for investors and analysts ahead of the Detroit auto show.

The automaker also said its luxury brand, Cadillac, will be GM's lead electric vehicle brand. Cadillac will introduce on vehicle on the company's new battery electric vehicle architecture.

The platform will provide a variety of body styles and will be offered in front-wheel, rear-wheel and all-wheel drive configurations, GM said.

Barra said the carmaker will continue to strengthen its core business this year, but also, "Invest in the technologies that will transform the future of mobility. Managing both well is critical to position General Motors for success for generations to come."

For 2019, GM said it expects to report earnings per common share at $6.50 to $7 and have an adjusted automotive free cash flow of $4.5 billion to $6 billion. That will be higher than what it expects to report for the full-year 2018. GM gave guidance in the third quarter that its earnings per share for 2018 would be $5.80 to $6.20 and its automotive free cash flow would be $4 billion. It says 2018 results will exceed those estimates.

17 million U.S. sales

GM predicts U.S. new vehicle sales will be in the low 17 million range this year. It views China as well-positioned for long-term growth despite recent challenges and dipping car sales. GM expects the China market will sell 27 million new vehicles this year, in line with what it sold in 2018.

"We have a strong track record and strong partnerships in China," said Barra, explaining that GM's history there along with a planned launch of 20 redesigned or refreshed products coming to the China market positions GM well to sustain profits there.

GM's announcements Friday comes as it continues to face harsh backlash following its announcement Nov. 26 that it would idle Detroit-Hamtramck, Lordstown Assembly in Ohio and Oshawa Assembly in Ontario by the end of 2019. It said it would also close transmission plants in Warren and near Baltimore.

It said the actions, along with massive job cuts across the company, will result in $6 billion in cash savings. GM CFO Dhivya Suryadevara said the moves will add up to $2.5 billion to GM's annual cost savings in 2019.

The restructuring move means GM will eliminate the vehicles — all sedans — built at these plants: Cadillac XTS, Chevrolet Cruze, Volt and Impala, and Buick LaCrosse. The Cadillac CT6's fate remains undecided, as Reuss indicated.

In all, about 6,500 hourly jobs are in danger, though Barra said Friday that GM has a 2,700 openings in other plants in Flint; Spring Hill, Tennessee; and Arlington, Texas, where affected workers could transfer. She said about 1,500 hourly workers have expressed interest in those openings and 700 have been placed in jobs and are "en route."

“There have been conversations in the past,” she said. “But Tesla’s not interested in our workforce represented by the UAW, so really it’s a moot point.”

GM will also cut about 8,000 white-collar jobs in North America this month.

Job cuts were necessary

These steps, Barra said, are necessary to take now despite a continued robust auto market.

"Doing something that's proactive when you have a strong labor market is important," said Barra. She said GM will continue to "have a dialogue" with the UAW and Unifor, Canada's union, to "take care of our team members" and GM will be transparent in its future business plans.

But GM insists the recent plant idling and job cuts are necessary to withstand market volatility and invest in future technology and partnerships. Wall Street investors liked that news, pushing GM's stock price up 5 percent on Nov. 26 after GM announced the plan.

GM has faced continued pushback against the cuts in Canada and the United States, however, with Michigan and Ohio lawmakers criticizing the moves and citing government investment of $11 billion to save GM after its 2010 bankruptcy.

GM will also participate in Deutsche Bank Global Auto Industry Conference 2019 on Jan. 16 in Detroit. Barra and Suryadevara will represent GM at the conference, where several automotive-related companies participate.